2003-09-04
Explaining the Energy-Efficiency Paradox. A Vintage Model with Returns to Diversity and Learning-by-Using: A Vintage model with returns to diversity and learning-by-using
Publication
Publication
This paper studies the adoption and diffusion of energy-saving technologies in a vintage model. An important characteristic of the model is that vintages are modeled as being complementary: there are returns to diversity of using different vintages. We analyse how diffusion patterns and adoption behaviour are affected by complementarity and learning-by-using. It is shown that the stronger the complementarity between different vintages and the stronger the learning-by-using, the longer it takes before firms scrap (seemingly) inferior technologies. We argue that this is a potentially relevant part of the explanation of the energy-efficiency paradox. Furthermore we explore the effects of energy tax policies.
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OCFEB | |
hdl.handle.net/1765/820 | |
Organisation | Research Centre for Economic Policy (OCFEB) |
de Groot, H., Hofkes, M., & Mulder, P. (2003). Explaining the Energy-Efficiency Paradox. A Vintage Model with Returns to Diversity and Learning-by-Using: A Vintage model with returns to diversity and learning-by-using. Retrieved from http://hdl.handle.net/1765/820 |